Soaring past AED 38 billion in premiums and growing at a blistering 15% annually, the UAE insurance market is undergoing a seismic shift fueled by booming health coverage and digital innovation.
Key Takeaways
- The UAE insurance market's total gross written premiums (GWP) reached AED 38.4 billion in 2023, reflecting a year-on-year growth of 15.2% driven by increased demand in health and motor segments.
- In 2022, the UAE non-life insurance sector accounted for 68% of total GWP, totaling AED 25.1 billion.
- Life insurance GWP in UAE grew by 18.7% to AED 12.3 billion in 2023 from AED 10.4 billion in 2022.
- UAE insurance penetration rate was 2.1% of GDP in 2023.
- Insurance density in UAE reached USD 1,050 per capita in 2023.
- Health insurance penetration among expatriates was 98.5% in Dubai by 2023.
- Life insurance new business premiums totaled AED 4.1 billion in 2023.
- Number of life policies sold increased by 14.2% to 1.2 million in 2023.
- Term life insurance held 55% market share in life segment in 2023.
- Motor insurance GWP was AED 12.5 billion, 46% of non-life in 2023.
- Comprehensive motor policies grew 16% to AED 8.2 billion GWP.
- Third-party motor claims averaged AED 4,200 per claim in 2023.
- AXA Gulf held 14.2% market share in general insurance in 2023.
- Dubai Islamic Insurance and Reinsurance (AMAN) had 9.8% share in Takaful.
- Oman Insurance Company captured 11.5% of motor segment.
The UAE insurance market saw strong growth driven by health and motor insurance demand.
General Insurance
- Motor insurance GWP was AED 12.5 billion, 46% of non-life in 2023.
- Comprehensive motor policies grew 16% to AED 8.2 billion GWP.
- Third-party motor claims averaged AED 4,200 per claim in 2023.
- Property & casualty insurance GWP reached AED 6.3 billion in 2023.
- Fire insurance claims from commercial properties totaled AED 1.2 billion.
- Marine cargo insurance premiums were AED 1.8 billion in 2023.
- Liability insurance GWP increased 21% to AED 2.1 billion.
- Cyber insurance policies sold numbered 4,500 with GWP AED 650 million.
- Construction all-risk insurance dominated engineering at AED 1.4 billion.
- Travel insurance GWP post-COVID recovered to AED 420 million.
- Energy insurance for oil & gas sector was AED 2.9 billion GWP.
- Theft claims in personal accident insurance rose 12% to AED 280 million.
- Workers' compensation premiums totaled AED 3.5 billion in 2023.
- Aviation insurance GWP was AED 750 million for UAE carriers.
General Insurance Interpretation
The UAE's insurance market reveals a nation barreling down the highway of comprehensive protection—as motor premiums fuel almost half the non-life sector—while simultaneously building, flying, and digitizing at a pace that demands equally robust policies against everything from fire to cyber-attacks and the occasional suspiciously sprained wrist.
Life & Health Insurance
- Life insurance new business premiums totaled AED 4.1 billion in 2023.
- Number of life policies sold increased by 14.2% to 1.2 million in 2023.
- Term life insurance held 55% market share in life segment in 2023.
- Savings and investment-linked products grew 28% to AED 3.2 billion GWP.
- Group life insurance premiums reached AED 2.8 billion in 2023.
- Individual life insurance penetration was 12% among UAE nationals in 2023.
- Critical illness riders attached to 35% of life policies in 2023.
- Annuity products GWP was AED 850 million in 2023.
- Health insurance covered 15.3 million lives in UAE in 2023.
- Outpatient health claims averaged 62% of total health claims value.
- Inpatient hospitalization claims cost AED 4.7 billion in 2023.
- Maternity coverage in health policies reached 78% utilization rate.
- Dental add-ons in health insurance grew 19% YoY to 25% attachment rate.
- Chronic disease management claims rose 32% to AED 1.9 billion.
- Telemedicine claims under health insurance totaled AED 450 million.
- Family floater health policies covered 68% of expatriate families.
- Senior citizen health premiums averaged AED 18,500 annually.
- Wellness benefits included in 45% of corporate health plans.
Life & Health Insurance Interpretation
The UAE's insurance market reveals a nation diligently buying term life for security and embracing wellness riders, yet its health claims whisper a costly tale of outpatient visits and chronic conditions that no amount of dental add-ons can fully sweeten.
Market Players & Shares
- AXA Gulf held 14.2% market share in general insurance in 2023.
- Dubai Islamic Insurance and Reinsurance (AMAN) had 9.8% share in Takaful.
- Oman Insurance Company captured 11.5% of motor segment.
- MetLife UAE led life insurance with 22.4% market share.
- Sukoon Insurance dominated Abu Dhabi non-life with 18.7% share.
- Salama Islamic Arab Insurance held 7.2% in family Takaful.
- RSA Middle East's health book grew 25% capturing 12% share.
- Watania Takaful achieved 6.5% overall Takaful market share.
- Union Insurance had 5.9% in property & casualty.
- Abu Dhabi National Takaful (ADNT) led with 13.1% in general Takaful.
- Top 10 insurers controlled 72% of total GWP in 2023.
- Orient Insurance grew fastest at 28% YoY in motor.
- Noor Takaful captured 4.8% in health Takaful segment.
- Daman led health insurance with 26.3% market share in Abu Dhabi.
- Sharjah Islamic Bank Takaful unit had 3.2% share.
- Insurers' ROE averaged 14.5% led by top players at 22%.
- New entrants like insurtechs held 2.1% combined share.
- Reinsurers like Munich Re supported 40% of ceded premiums.
- UAE Insurance Authority regulated 67 licensed companies in 2023.
- Solvency ratio for top 5 insurers averaged 220% in 2023.
Market Players & Shares Interpretation
AXA Gulf reins as the general insurance kingpin, MetLife UAE towers over life, and Daman commands Abu Dhabi's health, yet despite this oligopoly of established giants flexing robust profitability, nimble newcomers and specialized Takaful players are carving out their own lucrative fiefdoms in the UAE's fiercely competitive and well-regulated landscape.
Market Size & Growth
- The UAE insurance market's total gross written premiums (GWP) reached AED 38.4 billion in 2023, reflecting a year-on-year growth of 15.2% driven by increased demand in health and motor segments.
- In 2022, the UAE non-life insurance sector accounted for 68% of total GWP, totaling AED 25.1 billion.
- Life insurance GWP in UAE grew by 18.7% to AED 12.3 billion in 2023 from AED 10.4 billion in 2022.
- The overall UAE insurance market size was valued at USD 10.5 billion in 2023.
- Takaful insurance contributed AED 8.7 billion to the UAE market in 2023, up 22% YoY.
- UAE insurance market CAGR from 2018-2023 stood at 11.4%.
- General insurance premiums hit AED 26.8 billion in H1 2024.
- The market expanded to USD 11.2 billion by end-2023 per IMF estimates.
- Property insurance GWP reached AED 4.2 billion in 2023.
- Motor insurance dominated non-life with AED 12.5 billion in GWP for 2023.
- Health insurance GWP surged to AED 9.8 billion in 2023, a 20.1% increase.
- UAE insurance density was AED 3,850 per capita in 2023.
- Total assets of UAE insurers grew to AED 145 billion in 2023.
- Net premiums earned reached AED 32.1 billion in 2022.
- Reinsurance ceded amounted to AED 7.9 billion in 2023.
- Investment income for UAE insurers was AED 4.5 billion in 2023.
- Claims paid out totaled AED 22.3 billion in 2023 across all segments.
- Loss ratio for non-life insurance averaged 65.2% in 2023.
- Expense ratio stood at 28.4% for the UAE market in 2023.
- Combined ratio for general insurance was 93.6% in 2023.
Market Size & Growth Interpretation
The UAE insurance market is booming with impressive vitality, yet its robust 15.2% premium growth is tempered by the sobering reality that for every AED 100 collected, a combined AED 93.60 is paid out in claims and expenses, proving that safeguarding the nation's health and wheels is a thriving but finely balanced business.
Penetration & Density
- UAE insurance penetration rate was 2.1% of GDP in 2023.
- Insurance density in UAE reached USD 1,050 per capita in 2023.
- Health insurance penetration among expatriates was 98.5% in Dubai by 2023.
- Life insurance penetration grew from 0.8% to 1.2% of GDP between 2020-2023.
- Motor insurance coverage rate hit 92% of registered vehicles in 2023.
- Takaful penetration in UAE was 22.6% of total GWP in 2023.
- Bancassurance channel accounted for 35% of life insurance sales in 2023.
- Digital insurance penetration reached 28% of new policies in 2023.
- Employer-sponsored health insurance covered 85% of workforce in 2023.
- Property insurance density in Abu Dhabi was AED 450 per capita in 2023.
- Overall insurance expenditure per household averaged AED 2,800 annually in 2023.
- Non-life insurance penetration rate was 1.4% of GDP in 2023.
- Life insurance policies in force numbered 5.2 million in 2023.
- Average premium per life policy was AED 2,365 in 2023.
- Health claims per insured person averaged AED 1,850 in 2023.
- Motor third-party liability coverage was mandatory for 100% of vehicles.
- Insurance awareness campaigns boosted retail penetration by 15% in 2023.
- Female policyholders represented 42% of total in 2023.
- Under-30 age group penetration grew 25% YoY to 18% share.
- Rural areas insurance density lagged at AED 1,200 per capita vs urban AED 4,500.
Penetration & Density Interpretation
The UAE insurance market paints a picture of a society that is healthily, motor-ably, and digitally covered, yet one where life insurance and rural areas remain the underinsured wallflowers at a rather robust financial party.
Regulatory & Projections
- UAE insurance market projected to reach AED 55 billion by 2028 at 9.5% CAGR.
- Health segment expected to grow at 12.8% CAGR to 2027.
- Digital transformation to contribute 35% growth by 2025 per IA.
- Mandatory health insurance extended nationwide by 2025.
- Takaful market forecasted at AED 15 billion by 2027.
- ESG integration to boost sustainable insurance by 20% growth.
- Motor telematics adoption projected for 40% policies by 2026.
- Cyber risk premiums to reach AED 2 billion by 2028.
- Life insurance penetration targeted at 3% GDP by 2030.
- Insurtech investments to hit USD 500 million by 2025.
- Regulatory sandbox approved 12 insurtechs by 2024.
- Solvency II regime fully implemented boosting capital by 15%.
- Open insurance architecture rollout by 2025 for data sharing.
- Climate risk disclosures mandatory from 2024.
- Pension-linked insurance products to grow 30% post-reforms.
- Non-life CAGR projected at 8.2% to AED 40 billion by 2028.
- Microinsurance for low-income to cover 2 million lives by 2027.
- AI claims processing to reduce turnaround by 50% by 2026.
- Parametric insurance products to reach AED 1.5 billion GWP by 2028.
- Market consolidation expected with top 5 holding 60% by 2027.
- USD 14.2 billion market size projected for 2027.
- 18% growth in premiums forecasted for 2024 alone.
Regulatory & Projections Interpretation
The UAE insurance market is sprinting towards a AED 55 billion future, fueled by mandatory health cover, a digital revolution, and a regulatory push for sustainability, proving that even in a desert, the only thing growing faster than premiums is ambition.
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